Two Ways to Actively Manage WDC Investments

The older we get, the more we rely on our experience in making decisions. Experience can change our motivations and priorities, especially as it relates to our outlook on retirement.

If you're nearing retirement age, your view of investment risk has also probably evolved. What does that mean for your retirement plans? And what should you do to manage risk?

Here are two ways you can actively manage WDC investments for retirement readiness.

1. Review your asset allocation - and adjust as needed.

It is all about finding the right balance for your age, risk tolerance, and retirement income needs.

In general, older investors tend to shift toward a more conservative mix of investments to manage the risk of the assets they'll rely on for retirement income. This is because older investors have less time to make up for losses than their younger counterparts.

If your mix of investments is too aggressive for your age, you may be incurring "equity risk," which is the risk where a sudden drop in stock values can hurt your retirement income viability.

If you invest too conservatively, you're also at risk of inflation eating into your spending power, because the rate of growth in your portfolio is lower than the rate of inflation.

2. Clarify your spend down plan.

A spend down plan is a systematic approach to withdrawing assets over the course of your retirement.

A well-designed spend down plan can help you minimize your tax obligations while helping stretch your savings across your entire retirement. Questions to think about include:

• How will you use your funds in your account as a retirement income source?
• How will your multiple income sources (such as Social Security, WRS pension, and personal retirement savings such as Wisconsin Deferred Compensation Program or WDC account) work together to provide you with the retirement income you will need?
• How much of your retirement account should stay invested in stocks as your retirement progresses over time?

WDC is Here to Help You

To create an investment asset allocation approach and/or a spend down plan, take advantage of the WDC. The WDC can help with your investments, no matter your level of experience.

Talk with a local WDC retirement plan advisor to schedule a one-on-one meeting, in person or virtually. These meetings are part of the WDC and do not have an additional cost.

Appointments can be made online on the WDC site (look for the owl), which goes to wdc.timetap.com. You may also call the WDC at 1-877-457-9327.